As an Assistant Engineer you are tasked by the manager of you company to determine the sum of money required to buy a company car and then replaced it every 3 years up to a period of 24 years The replaced car can be sold at a cost of Php 110,000 and the new car cost Php 250,000. Yearly gasoline expenses are estimated to be Php 85,000 on the first year and an increase of Php 1,000 every year. The money needed are to be invested at 6%. The fund is to have a balance of Php 250,000 remaining at the end of 24 years.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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As an Assistant Engineer you are tasked by the manager of you company to determine the sum of money required to buy a company car and then replaced it every 3 years up to a period of 24 years The replaced car can be sold at a cost of Php 110,000 and the new car cost Php 250,000. Yearly gasoline expenses are estimated to be Php 85,000 on the first year and an increase of Php 1,000 every year. The money needed are to be invested at 6%. The fund is to have a balance of Php 250,000 remaining at the end of 24 years.

 

 

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